MoneyGram 2009 Annual Report Download - page 95

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
to December 31, 2009. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.
Note 4 — Acquisitions and Disposals
Blue Dolphin Financial Services N.V. — On February 5, 2010, the Company acquired Blue Dolphin Financial Services N.V. ("Blue
Dolphin"), a former super-agent in the Netherlands, for a purchase price of $1.4 million and an earn-out potential of $1.4 million. The
acquisition of Blue Dolphin provides the Company with the opportunity for further network expansion in the Netherlands and Belgium
under the European Union Payment Services Directive and additional control over sales and marketing activities.
R. Raphaels & Sons PLC — On February 2, 2009, the Company acquired the French assets of R. Raphaels & Sons PLC ("Raphaels
Bank") for a purchase price of $3.2 million. The acquisition of Raphaels Bank provided the Company with five money transfer stores in
and around Paris, France that have been integrated into its French retail operations.
The preliminary purchase price allocation as of December 31, 2009 includes $2.0 million of goodwill assigned to the Company's Global
Funds Transfer segment. The purchase price allocation is preliminary pending the completion of the valuation of fixed assets, intangible
assets and deferred taxes and will be completed in the first quarter of 2010. The Company incurred $0.2 million of transaction costs
related to this acquisition in 2008 which are included in the "Transaction and operations support" line in the Consolidated Statements of
Loss. The operating results of Raphaels Bank subsequent to the acquisition date are included in the Company's Consolidated Statements
of Loss. The financial impact of the acquisition is not material to the Consolidated Balance Sheets or Consolidated Statements of Loss.
FSMC, Inc. — On May 15, 2009, the Company's subsidiary FSMC, Inc. ("FSMC"), entered into an asset purchase agreement with
Solutran, Inc. to sell certain assets and rights for a price of $4.5 million. As a result of the sale, which was completed in the third quarter
of 2009, the Company recorded an impairment charge of $0.6 million to write off goodwill associated with FSMC. This impairment
charge is recorded in the "Transaction and operations support" line in the Consolidated Statements of Loss. The operating results of
FSMC are not material to the Company's Consolidated Statements of Loss and the assets and liabilities are not material to the Company's
Consolidated Balance Sheets. FSMC is included in the Company's "Other" results for segment reporting purposes.
ACH Commerce — After evaluating the Company's market opportunity for certain of its electronic payment services, the Company
announced a decision in December 2008 to exit the ACH Commerce business. In connection with this decision, the Company recognized
an impairment charge of $8.8 million to write off the goodwill associated with ACH Commerce. In the third quarter of 2009, the
Company recorded an impairment charge of $1.4 million on its proprietary software related to ACH Commerce. The impairment charge
was recorded in the "Transaction and operations support" line in the Consolidated Statements of Loss. ACH Commerce is not material to
the Consolidated Statements of Loss or the Consolidated Balance Sheets. ACH Commerce is included in the Company's "Other" results
for segment reporting purposes.
MoneyCard World Express, S.A. and Cambios Sol S.A. — In July 2008, the Company acquired MoneyCard World Express, S.A.
("MoneyCard") and Cambios Sol S.A. ("Cambios Sol"), two of its former super-agents in Spain, for purchase prices of $3.4 million and
$4.5 million, respectively, including cash acquired of $1.4 million and $4.1 million, respectively. The acquisition of these money transfer
entities provided the Company with a money transfer license in Spain, as well as the opportunity for further network expansion and more
control over marketing and promotional activities in the region.
In 2009, the Company finalized its purchase price allocation, resulting in goodwill of $4.3 million assigned to the Company's Global
Funds Transfer segment and $1.4 million of intangible assets. The intangible assets consist primarily of customer lists and developed
technology and are being amortized over useful lives ranging from three
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